Mechanical liens are a type of lien that can be placed on a vehicle when repairs or maintenance services have been performed but payment has not been made. In California, the DMV governs the process for enforcing these liens and conducting lien sales. The lien gives the repair shop the legal right to retain possession of the vehicle until payment is made or to sell the vehicle to recoup the costs of the unpaid services.
In California, the process for enforcing a mechanical lien involves giving notice to the owner of the vehicle and any other interested parties, such as lienholders or insurance companies. The notice must include information about the lien, the amount owed, and the deadline for payment. If payment is not made by the deadline, the repair shop may sell the vehicle through a lien sale. The proceeds of the sale are used to pay off the amount owed to the repair shop, and any remaining funds are returned to the owner of the vehicle.
Overall, understanding the process for enforcing a mechanical lien in California is important for both repair shops and vehicle owners. For repair shops, it ensures that they are able to recoup the costs of unpaid services. For vehicle owners, it serves as a reminder to pay for services in a timely manner to avoid the potential for a lien sale.
As it pertains to the lien sale process, the lien holder is the individual or company that is conducting the lien sale. They are the person or entity that needs to have a balance paid or a vehicle removed.
A lien sale is a DMV procedure that may be used by individuals, mechanics, body shops, junk yards or law enforcement to collect fees due for unpaid and overdo services, notify registered owners or interested parties or legal owners that there is a balance due, or that a vehicle has been abandoned or abated. In the case of a mechanic or body shop, It allows the lien holder to recover their costs, in the case of law enforcement or individuals, to notify interested parties that this vehicle needs to be removed or it will be sold and or destroyed.
REG 168 A form (certification of lien sale for vehicle valued $4000 or less – Civil Code 3072)
A bill of sale from the lien holder to the buyer (yourself)
A reg 343 form (application for title or registration)
A reg 156 form (application for replacement plates, stickers, documents)
Note: In addition to the documents requested above, if your vehicle has no California record/has been registered out of state, you will need the following:
A Vin Verification
If it is a commercial vehicle, you will need a weighmaster certificate
The DMV itself
Proxy service – registration service – although we cannot immediately process your application like a regular transfer ,we can assist you in getting the paperwork in order and taking your application to the DMV.
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Has your customer not paid you for your services? Has a vehicle been abandoned on your property? Has a customer disappeared on you with no way to get a hold of them? The lien sale process is the right solution for you!
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If you don’t plan on using your vehicle make sure to file a non-op on it as soon as possible.
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For vehicles with Manufacturer Statement of Origin (MSO) or out-of-state title
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Submitting an NRL as soon as you sell a car is absolutely imperative to avoid any legal issues or headaches. Our team can help you get this done ASAP.
When your transaction at the DMV is not complete, you will need a permit to operate your vehicle.